CO537-3707 — Page 183

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decided upon. Would such a person be available?

(a) the provisions suggested for inclusion in Exchange of

Notes could not, of course, be kept secret;

(e) in paragraph 1 under the heading "Exchange of Notes"

the words "administration of" should be

substituted for the words "maintenance of order in"

(e) Hong Kong legislation would be necessary to give the

force of law to the arrangements proposed in this. paragraph, to which with the amendment mentioned in (e) above, there is perhaps no great objection;

) paragraph 2 under heading "Txchange of Notea" presents

greatest difficulty (apart from the major objection referred to in paragraph 3 above). I am advised that while there might be no insuperable legal difficulty in devising machinery, practical difficulties would arise if, for example, sedition or similar offences were involved. In such cases Trustees would probably disagree and, while residents of China would be those most likely to cause this kind of trouble, they would be the very ones not amenable to Hong Kong jurisdiction, It might be of some use to provide both in any agreement with the Chinese and in the by-laws that, in view of the purpose for which the Garden had been established, no political activity of any kind would be permitted in it;

(h) For the last word "domicile" the words "ordinary

residence" would be preferable;

(1)-As in (7) above, Hong Kong legislation would be necessary

with reference to paragraph 2 also.

It is not proposed to take any decision on proposal until the opinion of the Law Officers is known, but, to assist further consideration, I should be grateful for your early views by telegram on proposal generally and on particular points raised above.

6.

Before the Chinese compromise proposal was made the Minister of Defence had been consulted as to the effect of the exercise of Chinese Jurisdiction in Kowloon Jity on military requirements for the defence of Hong Kong and had replied that for the reasons set out in the telegrais addressed to the Chiefs of Staff in London by CB.-in-Chief Committee Far East on the 29th April (SEALO8 851), a copy of which you

He have doubtless seen, it is inconsistent with those requirements. has been informed of the present Chineso proposal involving a partial surrender of jurisdiction to the Chinese, and that your observations are being invited.

Part II.

The Government of the Republic of China and His Majesty's Government in the United Kingdom have been considering an amicable and reasonable settlement of the controversy which has recently arisen

Both Governments, having in connection with the City of Kowloon, throughout maintained their claims in good faith, consider that the issue does not warrant a dispute between two peace-loving peoples with a long standing tradition of friendship.

/With